ALL >> Insurance >> View Article
Why Life Insurance
The worst may happen. You lead a blissful family life. You have a beloved wife, two kids and other loved family members. But one day suddenly you die in a road accident. Have you ever thought what would happen to your wife and children? In this world nobody has a risk free life. But the thing that will bring a little shower and give protection and security to your dependents is a life insurance policy. Furthermore, it is life insurance that will protect your home mortgage. After your death your family might not leave the house if your life insurance might pay off the mortgage.
A life insurance policy will play a vital and valuable role at virtually every stage of your life. If you have dependents or other people with whom you share your life, a life insurance policy is a must for you.
Life insurance can simply be defined as an agreement between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event like terminal illness or critical illness. In return of these services, the policy owner agrees to pay a ...
... stipulated amount called a premium at regular intervals or in lump sums. In a life insurance policy the insured event must be based upon the lives of the people named in the policy.
Here follows the details on life insurance.
Two basic types of life insurance
Primarily life insurance is of two basic categories: temporary and permanent.
Temporary life insurance:
Temporary life insurance or pure assurance is the type of life insurance, which provides for a specified term of years for a specified premium. Under this policy the insurer is bound to pay cash benefits to the beneficiary if the policy owner dies. Temporary life insurance only gives assurance in the event of death and nothing else. In a temporary life insurance policy premium can be for one or more years. Annual renewable term, for example, is one type of policy where your policy is automatically renewable each year up to a specific age limit.
Another sub-type of temporary life insurance is mortgage insurance, which gives protection for the policy holder's family, where mortgage will be paid if the insured dies.
Permanent life insurance:
Permanent life insurance is the type of life insurance policy, under which the policy owner will have to pay until the policy matures. A permanent life insurance policy also cannot be canceled by the insurer for any reason except fraud in the application, and the cancellation must occur within a period of time defined by law. It includes insurance, universal and Limited-pay insurance.
Life insurance coverage:
Before you go to open a life insurance policy, you should know about the life insurance coverage. There are at least eight different areas that a life insurance may cover. They include family coverage, business coverage, health coverage, retirement coverage, mortgage coverage, property coverage, loan coverage and life insurance coverage for landlords.
So, buy a life insurance policy and have a secured life.
About Author:
Greath Owen writes about life insurance policy. To know more about life insurance policy, visit http://www.lowcostlifeinsurance.co.uk
Add Comment
Insurance Articles
1. 6 Qualities Of A Reliable Music Insurance CompanyAuthor: victor12johnson
2. 5 Common Mistakes To Avoid When Getting Violin Insurance
Author: micheljordan4
3. Understanding The Need For Clarinet Insurance
Author: musicinstrumentsins
4. A Guide To Insuring Your Music Studio
Author: victor12johnson
5. Audio Equipment Insurance For Home Studios: Is It Worth It?
Author: micheljordan4
6. Best Astrologer In Hoodi
Author: Astrogroup
7. Explore Microsoft Software Solutions With Vexil Infotech
Author: vexil infotech
8. Vexil Infotech: Your Trusted Partner For Nbfc Loan Management Software
Author: vexil infotech
9. Why Choose Business Loans Over Other Options?
Author: Capital Business
10. A Comparative Analysis Of Dedicated Piccolo And Home Insurance Plans
Author: musicinstrumentsins
11. Common Perils Faced By String Instrument Owners
Author: victor12johnson
12. The Strategic Importance Of Financial Advisory In India's Growing Economy: Trends, Challenges, And Future Prospects
Author: Drishti Desai
13. The Hidden Costs Of Health Insurance
Author: Algates Insurance
14. Explore The Journey Of Saxophone From Raw Brass To Musical Beauty
Author: micheljordan4
15. Comparing Comprehensive Home Insurance Plans: Tips For Uae Residents
Author: Stephan Rose